Federal prosecutors who probed New York Attorney General Letitia James concluded last month that evidence undercuts key parts of her new mortgage-fraud indictment, sources told ABC News. An internal DOJ memo said any 2020 benefit was roughly $800 and noted vague “occupancy” rules that could make intent hard to prove. Investigators found James bought a Norfolk home for her great‑niece, who lived there rent‑free; records showed only $1,350 reported as utility reimbursement, not “thousands” in rent. After President Donald Trump ousted U.S. Attorney Erik Siebert, interim chief Lindsey Halligan secured charges and later fired the memo’s author, prosecutor Elizabeth Yusi.
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